Philips 2013 Annual Report Download - page 115

9 Supervisory Board report 9.2.8 - 9.2.11
Annual Report 2013 115
retirement age under the plan is 62.5. The plan does not
require employee contributions. For more details, see
note 33, Information on remuneration.
9.2.9 Additional arrangements
In addition to the main conditions of employment, a
number of additional arrangements apply to members
of the Board of Management. These additional
arrangements, such as expense and relocation
allowances, medical insurance, accident insurance and
company car arrangements, are in line with those for
Philips executives in the Netherlands. In the event of
disablement, members of the Board of Management
are entitled to benefits in line with those for other
Philips executives in the Netherlands.
Unless the law provides otherwise, the members of the
Board of Management and of the Supervisory Board
shall be reimbursed by the Company for various costs
and expenses, like reasonable costs of defending
claims, as formalized in the articles of association.
Under certain circumstances, described in the articles of
association, such as an act or failure to act by a member
of the Board of Management or a member of the
Supervisory Board that can be characterized as
intentional (“opzettelijk”), intentionally reckless
(“bewust roekeloos”) or seriously culpable (“ernstig
verwijtbaar”), there will be no entitlement to this
reimbursement. The Company has also taken out
liability insurance (D&O - Directors & Officers) for the
persons concerned.
9.2.10 Remuneration Supervisory Board
The table below gives an overview of the remuneration
structure, which has remained unchanged since 2008.
Remuneration 20131)
in euros per year
Chairman Member
Supervisory Board 110,000 65,000
Audit Committee 15,000 10,000
Remuneration Committee 12,500 8,000
Corporate Governance and
Nomination & Selection
Committee 12,500 6,000
Fee for intercontinental traveling
per trip 3,000 3,000
Entitlement Philips product
arrangement 2,000 2,000
1) For more details, see note 33, Information on remuneration
9.2.11 Year 2014
Accelerate! Grant
Based on the 2013 financial performance on CSG CAGR,
EBITA and ROIC, the Supervisory Board concluded in
her January 2014 meeting that all the performance
conditions exceed the mid-term targets as announced
in 2011. As a consequence the total number of shares
and options under the Accelerate! Grant, as these were
originally granted in January 2013, became
unconditional. On January 28, 2014 the shares (after
tax) have been delivered to the members of the Board
of Management. With respect to these shares a holding
period until January 29, 2018 applies. The options can
be exercised during the period January 29, 2016 -
January 29, 2023.
Pensions
In view of upcoming legislation in the Netherlands, the
pension arrangements will be reviewed in the course of
2014.